Marine Harvest Q Presentation - PDF Free Download

Marine Harvest Q1 2015 Presentation

Forward looking statements This presentation may be deemed to include forward-looking statements, such as statements that relate to Marine Harvest s contracted volumes, goals and strategies, including strategic focus areas, salmon prices, ability to increase or vary harvest volume, the anticipated business combination between MH Chile and Aqua Chile, production capacity, expectations of the capacity of our fish feed plant, trends in the seafood industry, including industry supply outlook, exchange rate and interest rate hedging policies and fluctuations, dividend policy and guidance, asset base investments, capital expenditures and net working capital guidance, NIBD target, cash flow guidance and financing update, guidance on financial commitments and cost of debt and various other matters concerning Marine Harvest's business and results. These statements speak of Marine Harvest s plans, goals, targets, strategies, beliefs, and expectations, and refer to estimates or use similar terms. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties. Our registration statement on Form 20-F filed with the US Securities and Exchange Commission in 2014 contain information about specific factors that could cause actual results to differ, and you are urged to read them. Marine Harvest disclaims any continuing accuracy of the information provided in this presentation after today. 2

Highlights Satisfactory operational EBIT of NOK 932m - Strong contribution from Norway - Challenging market conditions in Americas Convertible bonds converted to share capital Quarterly dividend of NOK 1.30 per share - To be paid in the form of a repayment of paid in capital 3

Market NOK per kg (Oslo) 60 50 40 30 20 10 20 18 16 14 12 10 8 6 4 2 USD per kg (Miami and Seattle) 0 2007 2008 2009 2010 2011 2012 2013 2014 Weekly reference prices 0 Reference price Norway (NASDAQ Oslo) Reference Price Chile (C trim fillet in Miami) Reference price North America (HOG Seattle) Prices in Europe at good levels despite weak Russian demand Weak prices in Americas North American supply growth Currency fluctuations impacting trade flows in several markets 5

Price achievement by origin 120% 111% 100% 100% 92% 93% 98% 98% 80% 60% 40% 20% 0% Norwegian Scottish Canadian Q1 2014 Q1 2015 Contract share 33% 68% 0% Superior share 92% 90% 86% Note: Q1 2015 average price achievement is measured versus reference prices in all markets (Norway/Faroes (NASDAQ), Scotland (NASDAQ+ NOK 1.74), Canada (UB Seattle) 6

Operational EBIT comparison (reclassified) 1 100 1 050 1 000 970 35 231 NOK million 950 900 850 41 61 4 932 800 750 700 Op EBIT Q1 2014 MH Feed Farming Markets Consumer Products Other Op EBIT Q1 2015 7

Norway SALMON OF NORWEGIAN ORIGIN Q1 2015 Q1 2014 NOK million Reclassifed Operational EBIT 839 707 Harvest volume 65 203 55 107 Operational EBIT per kg 12.87 12.83 - of which MH Markets 1.32 0.60 - of which MH Consumer Products -0.06-0.84 Exceptional items incl in op. EBIT -113-75 Exceptional items per kg -1.73-1.36 900 800 700 600 500 400 300 200 100 0 Op EBIT Q1 2014 Operational EBIT Salmon of Norwegian Origin Q1 2014 - reclassified vs Q1 2015 Price Volume Feed Oth SW costs Non SW costs Op EBIT Q1 2015 Price achievement/reference price 100% 92% Contract coverage 33% 40% Superior share 92% 91% Strong results in the quarter Lower spot price offset by a more favourable contract portfolio Increased treatment costs due to biological issues and higher sea temperatures - Sea lice mitigation costs of NOK 1.65 per kg in the quarter Note: Details on Nova Sea in appendix 8

Norway: Sales contract portfolio 35 000 30 000 25 000 Contracted volumes (HOG tonnes) 20 000 15 000 10 000 5 000 0 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Realised contract volumes last quarters Contracted volumes next quarters Note: Marine Harvest Norway s fixed price/fixed volume contracts with third party customers and MH s processing entities. MH s processing entities cover a large proportion of their sales exposure through third party end product contracts. 9

Norway: Operational EBIT/kg per region 18 16 15.98 14.95 14 12 13.73 12.11 11.53 10.85 12.33 12.8312.87 NOK per kg 10 8 9.72 6 4 2 0 South West Mid North Total 2014 Q1 2015 Q1 Including contribution from Sales and Marketing 10

Scotland SALMON OF SCOTTISH ORIGIN Q1 2015 Q1 2014 NOK million Reclassifed Operational EBIT 19 132 Harvest volume 7 112 10 468 140 120 100 Operational EBIT Salmon of Scottish Origin Q1 2014 - reclassified vs Q1 2015 Operational EBIT per kg 2.70 12.66 - of which MH Markets 1.84 2.67 - of which MH Consumer Products -0.02-0.28 80 60 40 20 Exceptional items incl in op. EBIT - 4 0 Exceptional items per kg -0.61 0.00 0-20 Op EBIT Q1 2014 Price Volume Feed Oth SW costs Non SW costs Translation Op EBIT Q1 2015 Price achievement/reference price 111% 93% Contract coverage 68% 64% Superior share 90% 95% Results impacted by biological issues as expected - Low volumes due to mortality in current generation - High biological costs on harvested fish (AGD and lice treatments) Prices in local market negatively affected by strengthening of GBP Cost improvements expected going forward 11

Canada SALMON OF CANADIAN ORIGIN Q1 2015 Q1 2014 NOK million Reclassifed 150 Operational EBIT Salmon of Canadian Origin Q1 2014 - reclassified vs Q1 2015 Operational EBIT 51 117 Harvest volume 10 478 6 368 Operational EBIT per kg 4.90 18.42 - of which MH Markets 0.41 0.83 - of which MH Consumer Products 0.00 0.00 100 50 0-50 Exceptional items incl in op. EBIT 0 0 Exceptional items per kg 0.00 0.00-100 Op EBIT Q1 2014 Price Volume Feed Oth SW costs Non SW costs Translation Op EBIT Q1 2015 Price achievement/reference price 98% 98% Contract coverage 0% 0% Superior share 86% 76% Low prices due to high supply growth in Americas Strong biological performance 12

Ireland and Faroes SALMON OF IRISH ORIGIN Q1 2015 Q1 2014 NOK million Reclassifed Operational EBIT 0 4 Harvest volume 616 476 Operational EBIT per kg -0.76 8.84 - of which MH Markets 0.00 0.00 - of which MH Consumer Products 0.07-0.47 Exceptional items incl in op. EBIT 0 0 Exceptional items per kg 0.00 0.00 Price achievement/reference price na na Contract coverage 95% 96% Superior share 92% 90% SALMON OF FAROESE ORIGIN Q1 2015 Q1 2014 NOK million Reclassifed Operational EBIT - 2 44 Harvest volume 0 2 084 Operational EBIT per kg 0.00 21.05 - of which MH Markets 0.00 0.67 - of which MH Consumer Products 0.00 0.00 Exceptional items incl in op. EBIT 0 0 Exceptional items per kg 0.00 0.00 Price achievement/reference price 0% 101% Contract coverage 0% 0% Superior share 0% 97% No volumes in the Faroes until Q4 2015 13

Consumer Products MH CONSUMER PRODUCTS NOK million Q1 2015 Q1 2014 Operating revenues 2 361 2 105 Operational EBIT - 2-63 Operatonal EBIT % -0.1% -3.0% Volume sold (tons product weight) 25 814 24 875 Exceptional items 0 0 Volume share salmon 69% 69% Revenue share salmon 74% 75% Improvements year over year, but still not satisfactory earnings - French smoked operations still challenging - Start-up costs in connection with new processing plant in Rosyth, Scotland Please note that Consumer Products is the combined operations of the former VAP Europe and Morpol 14

Feed FEED NOK million Q1 2015 Q1 2014 Operating revenues 392 0 Operational EBIT 19-16 Operational EBIT % 4.8% na Feed sold volume 38 037 na Feed produced volume 36 422 na Exceptional items 0 na MH Feed impacted by low season and third party commitments - Third party feed supply contracts will diminish during 2015 Notes: (1) Based on 2015 harvest volume estimate 15

Discontinued operations Chile and US operations SALMON OF CHILEAN ORIGIN - discontinued operation NOK million Q1 2015 Q1 2014 Operational EBIT Salmon of Chilean Origin Disontinued Operation Q1 2014 vs Q1 2015 Operational EBIT - 104 119 150 Harvest volume 16 067 17 741 100 50 Operational EBIT per kg -6.48 6.73 - of which MH Markets 3.06 0.95 - of which MH Consumer Products 0.00-0.01 0-50 -100 Exceptional items incl in op. EBIT -51-1 Exceptional items per kg -3.16-0.08-150 Op EBIT Q1 2014 Price Volume Feed Oth SW costs Non SW costs Translation Op EBIT Q1 2015 Price achievement/reference price 110% 103% Contract coverage 12% 29% Superior share 87% 84% Continued weak prices and unfavorable currency movements Costs affected by challenging biology and exceptional mortality - Full cost in box USD 5.2 per kg (HOG), including exceptional items - Exceptional mortality of NOK 51m in Region XI Volcanic eruption expected to have limited financial impact Notes: CTA with AquaChile; MH Chile to own 42.8% in combined entity 16

First Quarter 2015 Financials, Harvest Volumes and Markets 17

Profit and Loss Marine Harvest Group Q1 2015 Q1 2014 2014 NOK million Reclassifed Operational revenue and other income 5 652 5 241 22 847 Operational EBIT 1) 932 970 3 938 Unrealized salmon derivatives -48 3 54 Change in unrealized internal profit feed 11 0-92 Net fair value adjustment of biomass, onerous contracts - 589-177 - 263 Restucturing costs 1 0-51 Other non-operational items 0 0-168 Income from associated companies 12 14 150 Impairment losses - fixed assets 1 0-24 EBIT 319 810 3 544 Net financial items 247 25-2 136 Earnings before tax 567 835 1 408 Profit or loss for the period 387 766 940 EPS (NOK) 0.94 1.87 6.66 Operational EBIT margin 16.5% 18.5% 17.2% Harvest volume, HOG tons (salmonids) 83 409 74 502 351 369 Operational EBIT per kg incl margin from Sales and Marke 11.17 13.01 11.21 ROCE 3 ) 17.6 % 19.2 % 18.7 % Notes in appendix 18

Financial Position Marine Harvest Group NOK million 31.03.2015 31.03.2014 31.12.2014 Non-current assets 16 004 16 459 18 662 Current assets 14 144 15 234 18 294 Assets held for sale 5 982 1 141 19 Total assets 36 130 32 834 36 974 Equity 18 387 16 399 14 718 Non-current liabilities 12 269 11 988 16 572 Current liabilities 4 342 4 260 5 684 Liabilities held for sale 1 132 187 0 Total equity and liabilities 36 130 32 834 36 974 Net interest-bearing debt 7 518 7 511 9 268 Equity ratio 50.9% 49.9% 39.8% 19

Cash Flow and Net Interest Bearing Debt Marine Harvest Group Q1 2015 Q1 2014 2014 NOK million Reclassified NIBD beginning of period -9 268-7 791. -7 791 Operational EBITDA 1178 1 169 4 796 Change in working capital -341 184-913 Taxes paid -116-91 - 293 Other adjustments -52-128 182 Cash flow from operations 669 1 133 3 408 Net Capex -435-349 -1 578 Cash from disposal of assets held for sale 0 0 1 182 Other investments 9 2-73 Cash flow from investments -426-347 - 469 Net interest and financial items paid - 104-86 - 411 Other items - 108-42 -107 Bonds converted to equity 2 369 0 486 Dividend distributed / return of paid capital -492-510 -3 424 Translation effect on interest-bearing debt 87 98-719 Cash from discontinued operations -245 34-241 NIBD end of period -7 518-7 511-9 268 Debt distribution 1) : EUR 69% 64% 71% USD 13% 13% 14% GBP 4% 7% 4% Other currencies 14% 16% 11% 1) Debt distribution including effect of cross currency sw aps. 2) Currency effect on debt in Q1 is NOK 87 million. 20

2015 Cash Flow Guidance 2015 cash flow estimates - Working capital buildup NOK 900m Support further organic growth - Capital expenditures increased from NOK 1,700m to NOK 1,900m due to FX changes NOK 1,100m Maintenance NOK 550m - Smolt and cleaner fish NOK 250m - Other - Interest expenses NOK 270m - Tax payables NOK 650m Quarterly dividend in Q2 2015 of NOK 1.30 per share (repayment of paid in capital) Due to seawater growth patterns, WC is highly seasonal Slow seawater growth in 1H leads to working capital release and high seawater growth in 2H leads to working capital build up 21

Dividend policy The quarterly dividend level shall reflect the present and expected future cash flow generation of the Company To this end, a target level for net interest bearing debt is determined, reviewed and updated on a regular basis When the target is met, at least 75% of the annual free cash flow after operational and financial commitments will be distributed as dividends NIBD target revised to EUR 950m - EUR 1.8 per kg harvest volume (equivalent to ca NOK 15 per kg) - Residual attributed to non-farming businesses 22

Overview of financing EUR 555m Facility Agreement - Maturity Q4 2019 - Covenants: 35% equity ratio - Accordion option for parties to agree increased size of facility by EUR 295m - Lenders: DNB, Nordea, Rabobank and ABN Amro EUR 375m issued in April 2014 - Tenor 5 years, annual coupon 0.875% (1), conversion price EUR 10.5754 NOK 1,250m bond issued in February 2013 - Tenor 5 years, NIBOR + 3.5% Note: (1) Paid semi annually in arrears 23

Supply development Estimated volumes Compared to Q1 2014 Est. volumes Q1 2015 Q1 2014 Volume % Q4 2014 Suppliers Norway 258 600 235 900 22 700 9.6% 300 700 Chile 128 500 134 800-6 300-4.7% 138 200 Scotland 32 600 33 400-800 -2.4% 37 200 North America 28 800 22 400 6 400 28.6% 31 500 Faroe Islands 12 200 16 000-3 800-23.8% 22 700 Australia 10 400 9 700 700 7.2% 9 000 Ireland 1 700 1 400 300 21.4% 3 300 Other 4 100 2 700 1 400 51.9% 4 800 Sum 476 900 456 300 20 600 4.5% 547 400 Europe 305 100 286 700 18 400 6.4% 363 900 Americas 157 300 157 200 100 0.1% 169 700 Source: Kontali Supply growth in the upper range of previous guidance - Driven by higher than normal sea water temperatures in Norway and temporary increase in MAB Substantial supply growth from North America Stable supply growth from Chile when adjusting for frozen inventory Note: (1) Atlantic Salmon (HOG tons) 24

Development in reference prices Reference prices Q1 2015 Change vs Q1 2015 Change vs NOK Q1 2014 Market (4) Q1 2015 Norway (1) NOK 40.72-13.9% EUR 4.66-17.7% Chile (2) NOK 64.79 5.2% USD 8.35-17.3% North America (3) NOK 41.27-17.8% USD 5.32-35.4% Notes: (1) Average superior HOG price per kg (NASDAQ) (2) Average C trim price per kg (Urner Barry Miami 2-3 lb), equivalent to NOK 42.1 and USD 5.4 HOG (3) Average superior HOG price per kg (Urner Barry Seattle 10-12 lb) (4) Market price in local currency NOK per kg (Oslo) 60 50 40 30 20 10 0 20 18 16 14 12 10 8 6 4 2 0 USD per kg (Miami and Seattle) Weekly reference prices Reference price Norway (NASDAQ Oslo) Reference Price Chile (C trim fillet in Miami) Reference price North America (HOG Seattle) 25

Global volume by market Estimated volumes Compared to Q1 2014 Est. volumes 12 month comparison Q1 2015 Q1 2014 Volume % Q4 2014 LTM PTM Markets EU 219 600 187 400 32 200 17.2% 253 700 922 900 818 900 USA 92 700 86 900 5 800 6.7% 87 900 358 300 336 700 Brazil 26 000 22 600 3 400 15.0% 24 000 93 800 82 200 China / Hong Kong 16 900 15 700 1 200 7.6% 17 600 77 300 57 300 Russia 16 600 28 800-12 200-42.4% 37 200 118 600 139 500 South Korea/Taiwan 12 900 6 600 6 300 95.5% 11 300 43 300 30 100 Japan 12 600 12 300 300 2.4% 16 000 57 800 55 200 Ukraina 1 900 4 000-2 100-52.5% 4 300 14 000 22 600 Sum main markets 399 200 364 300 34 900 9.6% 452 000 1 686 000 1 542 500 Other markets 85 100 75 400 9 700 12.9% 92 600 344 600 307 500 Total all markets 484 300 439 700 44 600 10.1% 544 600 2 030 600 1 850 000 Inflow to US from Europe 22 100 24 100-2 000-8.3% 23 500 96 400 89 900 Inflow to EU from Chile 12 200 11 700 500 4.3% 11 000 45 900 46 300 Source: Kontali Strong demand response in EU and continued strong growth in Asia Russia/Ukraine significantly down due to trade sanctions and FX Brazil down in March due to FX 7% growth in the USA Note: Atlantic Salmon (HOG tons), LTM Last twelve months, PTM Previous twelve months 26

Industry supply outlook 2009 2010 2011 2012 2013 2014 Estim ates 2015 HOG tonnes (thousands) Low Y/Y growth High Y/Y growth Norw ay 770 850 905 1065 1029 1079 1 116 3% 1 153 7% Chile 215 117 199 328 421 525 501-4% 514-2% North America 124 126 124 140 122 109 126 15% 133 22% UK 130 129 139 143 142 154 158 2% 163 6% Other 88 88 103 124 123 137 135-2% 141 3% Total 1 327 1 310 1 470 1 800 1 837 2 004 2 036 2% 2 104 5% Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 ESTIMATES Q2 2015 HOG tonnes (thousands) Low Q/Q growth High Q/Q growth Norw ay 176 195 201 253 230 265 265 0% 279 5% Chile 47 30 40 77 96 122 108-12% 113-8% North America 33 28 28 35 32 26 30 13% 31 17% UK 29 29 34 35 34 41 42 2% 44 6% Other 20 19 24 28 29 33 34 3% 37 11% Total 306 301 327 429 420 489 479-2% 503 3% H2 2009 H2 2010 H2 2011 H2 2012 H2 2013 H2 2014 ESTIM ATES H2-2015 HOG tonnes (thousands) Low H2/H2 growth High H2/H2 growth Norw ay 430 459 514 570 567 578 592 3% 616 7% Chile 76 56 125 184 216 267 265-1% 273 2% North America 61 67 69 71 58 60 67 12% 73 21% UK 74 68 76 73 80 80 83 5% 87 9% Other 47 50 56 65 63 74 72-3% 76 4% Total 689 701 841 963 984 1 059 1 080 2% 1 124 6% Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algae blooms etc. and market developments. 27

MHG 2015 volume guidance Salmon species 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Q1 2015 Q2 2015 H2 2015 2015 HOG tons (1000) Actual Actual Actual Actual Actual Actual Actual Estimate Estimate Estimate Norway 222 55 69 64 70 258 65 65 136 266 Canada 33 6 6 7 7 27 10 12 19 41 Scotland 48 10 18 14 6 49 7 13 36 56 Other Units 12 3 4 6 5 18 1 2 8 11 Total 315 75 98 91 89 351 83 92 199 374 Chile (1) 28 18 16 17 17 68 16 15 35 66 Total, adjusted (1) 344 92 114 107 105 419 99 107 234 440 Note (1) Includes discontinued operations Q2 2015 growth expected to be negative 6% (including Chile) 2015 growth expected to be 5% (including Chile) Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algae blooms etc. and market developments. 28

Outlook Favourable market and supply outlook in Europe - Futures prices (NASDAQ) next 12 months at ca NOK 40 per kg Monitoring the market conditions in the Americas closely MHG supportive of Norwegian White Paper - Responsible approach by the Norwegian government - Improved biological control a prerequisite for sustainable growth AquaChile merger in process Quarterly dividend of NOK 1.30 per share - To be paid in the form of repayment of paid in capital 29

Appendix 30

Conditional agreement to merge MH Chile with AquaChile Forming a leading player in the Chilean industry - 165 thousand tonnes of salmonids capacity of 260 thousand tonnes (HOG) - Infrastructure to support stand alone operations in region X and XI - 19 thousand tonnes of Tilapia capacity of 25 thousand tonnes (WFE) Major step towards a more sustainable biological framework in Chile Marine Harvest to own 42.8% post merger - AquaChile to remain listed on the Santiago Stock Exchange - Option to increase ownership to at least 55% (1) Tentative closing in Q3 2015 Marine Harvest Chile reported as Discontinued Operations from Q1 2015 (1) Option may be exercised from 15 June 2016 until 15 June 2017 31

Consolidation required in Chilean farming industry 1250 concessions in total Fragmented industry structure Biological challenges Lack of coordination and logistics 32

Contract coverage and sales contract policy Q2 2015 contract shares (% of guided volume): - Norway 32% - Scotland 40% - Canada 0% SALES CONTRACT POLICY Min hedging rate (1) Max hedging rate (1) Norway (2) (3) 15.0 % 50.0 % Canada 0.0 % 30.0 % Scotland 40.0 % 75.0 % Ireland 0.0 % 30.0 % Faroes 0.0 % 30.0 % Weighted average 17.6 % 50.8 % Note: (1) Hedging rates for the next quarter, limits dropping over time (2) External and internal contract (including financial futures) (3) Contract rate can be increased to 65% under special circumstances Contracts typically have a duration of 3-12 months - Contracts are entered into on a regular basis - Policy opens for contracts of up to 36 month duration 33

Development in reference prices PRICE AND GLOBAL VOLUME ALLOCATION TO THE EU MARKET 270 000 6.0 95 000 PRICE & GLOBAL VOLUME ALLOCATION TO THE US MARKET 14.0 Tonnes (GW) 250 000 230 000 210 000 190 000 170 000 150 000 5.0 4.0 3.0 2.0 1.0 EUR per kg (GW) Tonnes (GW) 90 000 85 000 80 000 75 000 70 000 65 000 60 000 55 000 12.0 10.0 8.0 6.0 4.0 2.0 USD per kg 130 000 Q1 2007 Q1 2009 Q1 2011 Q1 2013 Q1 2015 Q2 2007 Q2 2009 Volume EU Q2 2011 Q2 2013 Q3 2008 Q3 2010 Q3 2012 Q3 2014 Q4 2007 Reference price Norway, GW (Oslo) Q4 2009 Q4 2011 Q4 2013 0.0 50 000 Q1 2007 Q1 2009 Q1 2011 Q1 2013 Q1 2015 Q2 2007 Q2 2009 Q2 2011 Q2 2013 Q3 2008 Q3 2010 Q3 2012 Q3 2014 Q4 2007 Q4 2009 Q4 2011 Q4 2013 Volume USA Reference price North America, GW (Seattle) Reference price Chile, Fillets (Miami) 0.0 Reference prices Q1 2015 Change vs Q1 2015 Change vs NOK Q1 2014 Market (4) Q1 2015 Norway (1) NOK 40.72-13.9% EUR 4.66-17.7% Chile (2) NOK 64.79 5.2% USD 8.35-17.3% North America (3) NOK 41.27-17.8% USD 5.32-35.4% Notes: (1) Average superior HOG price per kg (NASDAQ) (2) Average C trim price per kg (Urner Barry Miami 2-3 lb), equivalent to NOK 42.1 and USD 5.4 HOG (3) Average superior HOG price per kg (Urner Barry Seattle 10-12 lb) (4) Market price in local currency 34

Key performance indicators MH Consumer MH Markets Products Sales and Marketing Q1 2015 Q1 2015 Operational revenues and other income 3984 2 361 Operational EBIT 108 2 EBIT margin % 2.7% 0.1% Q1 2015 Q1 2014 Reclassifed Group EBIT per kg (NOK) 10.96 13.30 Contribution from Farming (NOK) 9.69 13.24 Contribution from Markets (NOK) 1.30 0.90 Contribution from Consumer Products (NOK) 0.02 0.85 Group Harvest Volume (k tonnes) 83 409 74 502 Operational EBIT from source of origin (NOK m) 914 991 Operational EBIT from other units (NOK m) 18 21 Group operational EBIT 932 970 35

Key financials Marine Harvest Group - main figures Q1 2015 Q1 2014 2014 Unaudited NOK million Operational revenue and other income 5 652 Reclassifed 5 241 22 847 Operational EBIT 1) 932 970 3 938 Cash flow from operations 669 1 133 3 408 Net interest-bearing debt (NIBD) 7 518 7 511 9 268 Underlying EPS (NOK) 2) 1.33 1.78 7.01 Net cash flow per share (NOK) 3) -0.37 1.76 6.65 ROCE 4) 17.6% 19.2% 18.7% Harvest volume (gutted weight tons, salmon) 83 409 74 502 351 369 Operational EBIT - NOK per kg 5) - Total 11.17 13.01 11.21 Norway 12.87 12.83 11.81 Scotland 2.70 12.66 9.63 Canada 4.90 18.42 9.14 1) Excluding change in unrealised gain/losses from salmon derivatives, net fair value adjustment of biomass, onerous contracts provision, results from associated companies, restructuring cost, impairment losses of fixed assets/intangibles and other non-operating items 2) Underlying EPS: Operational EBIT adjusted for accrued payable interest, with estimated weighted tax rate - per share 3) Net cash flow per share: Cash flow from operations and investments, net financial items paid and realised currency effects 4) ROCE: Annualised return on average capital employed based on EBIT excluding fair value adjustments of biomass, onerous contracts provision and other non-operating items/ Average NIBD + Equity, excluding fair value adjustments of biomass, onerous contracts provision and net assets held for sale, unless there are material transactions in the period 5) Operational EBIT per kg including allocated margin from Sales and M arketing (from own salmon) 36

Quarterly segment overview SOURCES OF ORIGIN NOK million Norway Scotland Canada Ireland Faroes Other 1) MH Group OPERATIONAL EBIT MH FARMING 757 6 47-1 - 1 808 MH SALES AND MARKETING MH Markets 86 13 4 0-1 6 108 MH Consumer Products - 4 0 0 0 0 2-2 SUBTOTAL 839 19 51 0-2 8 914 MH Feed 19 19 Other entities 2) -1-1 TOTAL 839 19 51 0-2 25 932 Harvest volume (gutted weight tons, salmon) 65 203 7 112 10 478 616 0 83 409 Operational EBIT per kg (NOK) 3) 12.87 2.70 4.90-0.76 0.00 11.17 - of which MH Markets 1.32 1.84 0.41 0.00 0.00 1.30 - of which MH Consumer Products -0.06-0.02 0.00 0.07 0.00-0.02 ANALYTICAL DATA Price achievement/reference price (%) 4) 100% 111% 98% 0% 101% Contract coverage (%) 33% 68% 0% 95% 0% 21% Quality - superior share (%) 92% 90% 86% 92% 0% 91% Exceptional items (NOK million) 5) -113-4 0 0 0 0-117 Exceptional items per kg (NOK) 5) -1.73-0.61 0.00 0.00 0.00-1.41 GUIDANCE Q2 2015 harvest volume (gutted weight tons) 65 000 13 000 12 000 2 000 0 92 000 2015 harvest volume (gutted weight tons) 266 000 56 000 41 000 9 000 2 000 374 000 Q2 2015 contract share (%) 32% 40% 0% 0% 0% 28% 1) Operational EBIT arising from non salmon speices and 3rd party salmon not allocated to source of origin 2) Sterling White Halibut, Headquarter and Holding companies 3) Including Sterling White Halibut, MH Feed, Headquarter and Holding companies 4) MH Sales and Marketing Price achievement 5) Exceptional items impacting operational EBIT 37

Quarterly segment overview MH Operating Units Farming Farming Farming Farming Farming Farming MH Sales and Marketing Consumer Norway Scotland Canada Chile Ireland Faroes Markets Products MH Feed Other Elim MH Group* Revenues and other income 2 582 318 429 0 48 0 3 984 2 361 392 101-4 563 5 652 Operating EBITDA 856 38 68 0 7 2 113 49 38 6 0 1 178 Operating EBIT 757 6 47 0-1 - 1 108-2 19-1 0 932 Fair Value adj on biomass, contracts/ unrealised derivatives - 742 57 15 0 79 5 0 0 0-51 0-637 Unrealized margin adjustment 0 0 0 0 0 0 0 0 0 0 11 11 Restructuring cost 0 0 1 0 0 0 0 0 0 0 0 1 Other non-operational items 0 0 0 0 0 0 0 0 0 0 0 0 Income/loss from associated companies 12 1 0 0 0 0 0 0 0 0 0 12 Write-down of fixed assets/intangibles 0 0 0 0 0 0 0 1 0 0 0 1 EBIT 27 63 63 0 78 4 108-1 19-52 11 319 Contribution to operational EBIT from S&M 82 13 4 0 0-1 - 108 2 8 0 Operational EBIT incl contribution from S&M 839 19 51 0 0-2 0 0 19 6 0 932 Harvest / sales volume 65 203 7 112 10 478 0 616 0 74 696 25 814 Operational EBIT/kg incl contribution from S&M 12.87 2.70 4.90 0.00-0.76 0.00 -of which S&M 1.26 1.82 0.41 0.00 0.07 0.00 *Volume = harvested volume salmon in tonnes gutted weight 38

Development in harvest volumes 2007 2008 2009 2010 2011 2012 2013 2014 2015E Total Total Total Total Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2E H2-15E Total Norway 168.2 171.1 201.7 202.5 217.5 62.7 64.0 58.5 70.1 255.3 47.3 53.5 53.1 68.6 222.5 55.1 68.7 64.3 69.9 258.0 65.2 65.0 135.8 266.0 Canada 39.5 36.1 36.5 33.5 33.9 10.6 10.6 8.3 10.8 40.2 12.2 8.9 6.2 5.7 33.1 6.4 6.5 7.1 6.8 26.7 10.5 12.0 18.5 41.0 Scotland 31.1 32.3 37.7 33.1 50.2 9.2 11.4 13.0 6.7 40.3 9.6 13.3 13.8 11.7 48.4 10.5 18.3 13.7 6.4 48.9 7.1 13.0 35.9 56.0 Other (1) 10.5 11.8 15.0 16.0 15.3 4.4 3.6 3.7 4.7 16.3 2.7 3.6 2.0 3.2 11.5 2.6 4.3 5.5 5.4 17.8 0.6 2.0 8.4 11.0 Total 249.3 251.2 290.9 285.1 316.8 87.0 89.5 83.4 92.2 352.1 71.8 79.4 75.0 89.2 315.5 74.5 97.8 90.6 88.5 351.4 83.4 92.0 198.6 374.0 GROWTH RELATIVE TO SAME PERIOD IN PREVIOUS YEAR 2007 2008 2009 2010 2011 2012 2013 2014 2015E Total Total Total Total Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2E H2-15E Total Norway 19% 2% 18% 0% 7% 30% 18% 23% 4% 17% -25% -16% -9% -2% -13% 17% 28% 21% 2% 16% 18% -5% 1% 3% Canada 16% -9% 1% -8% 1% 12% 36% 4% 23% 19% 15% -16% -25% -47% -18% -48% -28% 14% 19% -19% 65% 86% 34% 54% Scotland 0% 4% 17% -12% 51% -11% -13% -8% -47% -20% 4% 17% 6% 74% 20% 9% 37% 0% -46% 1% -32% -29% 78% 15% Other (1) 21% 12% 28% 7% -4% 4% -8% 48% 0% 7% -39% 2% -45% -31% -29% -4% 20% 172% 67% 54% -76% -54% -23% -38% Total -21% 1% 16% -2% 11% 20% 14% 16% -1% 11% -17% -11% -10% -3% -10% 4% 23% 21% -1% 11% 12% -6% 103% 6% Notes: (1) Ireland and the Faroes 39

Net capital expenditure guidance Maintenance level 40

Net working capital guidance 41

Guidance on financial commitments and cost of debt 900 800 700 600 Contractual repayments NOK million 500 400 300 200 Interest expenses 100 0 2011 2012 2013 2014 2015 Please note the approximations are subject to changes 42

Nova Sea Harvest volume (HOG) EBIT(1) per kg NIBD Ownership % 2013 2014 Q1 2014 Q1 2015 2013 2014 Q1 2014 Q1 2015 31.03.2015 Nova Sea 48 % 34,910 38,739 6,542 6,938 13.4 12.3 15.0 14.8 257 Leading integrated salmon producer in Northern Norway - 33.33 wholly owned licenses - 4 partly owned licenses Marine Harvest has an ownership in Nova Sea of ~48% through direct and indirect shareholdings 2014 dividends of NOK 150m (Q2) - Marine Harvest s share NOK ~73m Proposed dividend for 2014 of NOK 150m to be paid in 2015 (MHG share NOK ~73m) Proportion of income after tax reported as income from associated companies in Marine Harvest Norway - NOK 15.9 million in Q1 2015 IFRS adjustment of biomass NOK 20.8m 43

Debt distribution and interest rate hedging DEBT VOLUME HEDGED AND FIXED RATES OF INTEREST RATE HEDGES (MARCH-MARCH) (1) CURRENCY DEBT 2015 2016 2017 2018 2019 2020 2021 2022 31/03/2015 (2) Nominal value Fixed rate (3) Nominal value Fixed rate (3) Nominal value Fixed rate (3) Nominal value Fixed rate (3) Nominal value Fixed rate (3) Nominal value Fixed rate (3) Nominal value Fixed rate (3) Nominal value Fixed rate (3) EUR m 622.2 368.9 1.00% 507.1 1.34% 636.9 1.67% 911.8 2.34% 970.5 3.27% 380.0 2.13% 380.0 2.20% - 0.00% USD m 138.9 123.0 1.98% 151.0 2.91% 138.5 3.12% 138.5 3.21% 167.5 2.93% 78.3 2.31% 78.3 2.31% 60.0 4.13% GBP m 29.0 34.0 2.48% 34.0 3.04% 34.0 3.13% 34.0 3.13% 34.0 3.13% 23.5 2.83% 23.5 2.83% - 0.00% Other (NOK m) 1 227.9 Market value of IRS contracts in MNOK (31/03/15): -689.3 Mark to market valuation effect in Q1 (4) : -24.8 Difference in fixed vs floating rate settled in cash in Q1-30.9 Notes: (1) MHG choses March as the starting month for all new interest hedging contracts (2) Debt at book value after taking cross currency swaps into account (3) Financing margin not included (4) Quarterly change in market value booked against P/L POLICY: External interest bearing debt is distributed as follows: EUR 71%, USD 13%, GBP 4%, other currencies 12%. Marine Harvest ASA shall hedge 70%-100% of the Group s long-term interest-bearing debt by currency with fixed interest or interest rate derivatives for the first 4 years and 0%-60% for the 5 following years. Interest-bearing debt includes external interest-bearing debt and leasing in the parent company or subsidiaries. The interest rate hedges shall be based on the targeted currency composition. Interest rate exposure in other currencies than EUR, USD and GBP shall not be hedged Please note that the current portfolio deviates from the policy due to inter alia the recent bond and convertible bond issuance. The policy will be reviewed. Policy last updated 7 February 2012. 44

Hedging and long term currency exposure POLICY EUR/NOK - Marine Harvest shall hedge between 0% and 30% of its assumed annual expenses in NOK against the EUR with a horizon of two years. The annual hedging shall be evenly distributed across the months of the year. USD/CAD - Marine Harvest shall not hedge the USD/CAD exposure. USD/CLP - Marine Harvest shall not hedge the USD/CLP exposure Internal transaction hedging relating to bilateral sales contracts - As of 1 April 2011, all bilateral sales contracts are subject to internal currency hedging of the exposure between the invoicing currency and NOK - The operating entities hedge this exposure towards the parent company. In accordance with the general hedging policy, this exposure is not hedged towards external counterparties - The purpose of the internal hedging is to allow for a more accurate comparison between the MH Farming entities (including contribution from Sales) and peers with respect to price achievement and operational EBIT Policy last updated 7 February 2012. 45

Strategic currency hedging EUR/NOK STRATEGIC CURRENCY HEDGING MEUR Rate 2015 131 8.46 2016 161 9.16 P/L effect of contracts maturing in Q1-10 (MNOK) MNOK Market value 31/12/2014-81 Change (1) 100 Market value 31/03/2015 19 DESIGNATED MARKET CURRENCIES Norway Chile Canada Scotland Feed VAP Morpol Faroes Cold Water Species Asia EUR USD USD GBP EUR EUR EUR EUR NOK USD 46

Impact of currency/interest rate movements Average rates 1 CAD 1 EUR 1 GBP 1 USD Averge Q1 2015 6.2580 8.7318 11.7503 7.7594 Average Q1 2014 5.5273 8.3471 10.0830 6.0951 Average rates 1 CAD 1 EUR 1 GBP 1 USD Q1 2015 vs Q1 2014 13.2% 4.6% 16.5% 27.3% End of quarter rates 1 CAD 1 EUR 1 GBP 1 USD 31/3/15 vs. 31/12/14-1.2% -3.7% 3.4% 8.8% Impact on Profit and Loss (versus Q1 2014) - Currency impact on net financial items Positive impact of NOK 436.6m (Positive NOK 18.9m) Impact from currency on Financial Position (versus 31/12/14) - Increase in interest-bearing debt due to currency NOK 87m 47

Fair value adjustment of biomass Under IFRS (IAS 41) the company is required to value biological assets at a fair market value. During the second half of 2011, the largest salmon farming companies in Norway, with support from audit firms, formed an industry working group where the objective was to reach a converged and improved common approach for estimating the fair value of the biomass in accordance with IAS 41. Following the working group s conclusions, Marine Harvest has with effect from the fourth quarter 2011, refined its calculation model. The model enhancements have been made to capture the fair value development during the lifetime of the fish in an improved manner. The revised model split the biomass into 3 groups based on size: - Fish below 1 kg live weight ( smolt ) is valued at accumulated cost - Fish between 1 kg and 4 kg live weight (immature fish) incorporates a proportionate share of the expected net profit at harvest - Fish above 4 kg (mature fish) is valued at the expected net value The main drivers in the valuation are: - Volume of biomass (and average weight per site) at every reporting date - Expected cost at harvest - Expected value at harvest (based on externally quoted forward prices where applicable and/or the most relevant price information available for the period in which the fish is expected to be harvested) Operationally, the value of biomass is reported at cost. In the Group accounts, fair value adjustments are added to costs of each operating unit and combined, the two elements constitute the fair value of biomass. The change in fair value adjustment is income or expense classified on a separate line in the Profit and Loss statement in each period. This item is not included in Operational EBIT. 48

Tax losses carried forward (YE 2014) Marine Harvest Group 31.12.2014 NOK million Recognised Unrecognised Total USA 69 0 69 Poland 248 51 298 France 35 256 291 Germany 14 0 14 Chile 0 310 310 Italy 0 4 4 Other 3 21 24 Total 368 641 1 010 * The NOL's will be used to offset taxavle profit in the countries going forward * The utilisation of the deferred tax asset on NOL's gives rise to a tax expense in the accounts which do not normally have any cash effect Most of the deferred tax assets have been recognised on the statement of financial position The NOL s will be used to offset taxable profit in the countries going forward The utilisation of the deferred tax asset on NOL s gives rise to a tax expense in the accounts which do not normally have any cash effect Details are available in the 2013 Annual Report 49

The Board s current authorisations The Board was given the following proxies at the AGM - General share capital increase (up to 10% of share capital) Proxy to set aside shareholders pre-emption right to subscribe - Purchase of own shares (up to 10% of share capital) Maximum price: NOK 120 per share Minimum price: NOK 7.5 per share - Issuance of new convertible bond Maximum amount: NOK 3,200m Maximum number of shares to be issued as settlement: 64m - Authorisation to issue quarterly dividends 50

Sensitivities ESTIMATED SENSITIVITIES ON ANNUAL RESULTS OP. EBIT EFFECT CASH FLOW EFFECT DRIVER NOK million Change in global average salmon price of NOK 1 (1) (2) 440 403 Annual harvest volume Change in total harvest volume of 10,000 tonnes (2) (3) 100 92 Marginal volume Change in global feed price of NOK 1 per kg (4) (5) 345 574 Feed consumption Notes: (1) Assuming all sales at spot prices, Please see contract policy and estimated contract rates in the latest quarterly presentation (2) Normally 30 days credit on sale of salmon, effect assumes stable volume between years and across months (3) Assuming EBIT per kg of NOK 10 (4) Annual harvest volume converted to live weight (0.83) multiplied with feed conversion ratio (1.3) Assuming stable production and feed consumption between years and across months (5) 60 days credit time on feed 51